North Carolina Foreclosure Process

Laws

• In North Carolina, the foreclosure process is most often a non-judicial foreclosure. No court action is required as the mortgage generally contains a provision called a power of sale clause. Upon non-payment of the mortgage, or default, an attorney initiates the foreclosure process to satisfy the mortgage loan.
  
  

Notification

• Notification requirements in a non-judicial foreclosure are strict in North Carolina. The attorney conducting the foreclosure must serve a notice of foreclosure to all owners and occupants of the property 20 days prior to the sale. The notification must include a legal description of the property. The attorney also must publish a notice of foreclosure sale date once each week for at least two weeks in a general circulation newspaper in the county where the property is located. The last published notice must be more than 10 days prior to the sale date. The attorney also must post a notice of foreclosure sale at the courthouse at least 20 days before the sale date.
  
  

Auction

• On the foreclosure sale date, an agent or trustee of the attorney will auction the property between 10 a.m. and 4 p.m. at the courthouse where the notice was posted. The courthouse must be open for business at the time of the sale. The property can be sold to the highest bidder, which includes the lender. Foreclosure auctions may be postponed in North Carolina for up to 90 days as long as the attorney posts a notice of postponement at the courthouse.
  
  

Alternatives

• An alternative foreclosure process available in North Carolina is a judicial foreclosure. This process is also known as a foreclosure by action. Lenders can initiate a judicial foreclosure through the court system. A judge issues a final judgment of foreclosure and the property is sold by the sheriff as part of a publicly noticed sale.
  
  

Redemption

• An uncontested non-judicial foreclosure process can take between 90 and 120 days in North Carolina. The borrower can delay the process by filing bankruptcy or by court action. North Carolina has a 10-day right of redemption window in which the borrower can pay the defaulted loan in full plus costs and reclaim the property.